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Is the world becoming uninsurable?

(charleshughsmith.substack.com)
478 points spking | 1 comments | 17 Jan 25 00:32 UTC | HN request time: 0s | source
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bluedevil2k ◴[17 Jan 25 01:50 UTC] No.42733208[source]▶
Like we see in California, when the government sets a price ceiling, insurance companies just leave. Same in Florida. If the free market truly was allowed run normally, the insurance rates in Pacific Palisades or on the Florida coast would be so high that no one could afford to live there. Is that a bad thing? If someone was living in a house near where they tested missiles, we'd call them crazy. At what point can we say the same about people building and rebuilding over and over in these disaster areas.
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underwater ◴[17 Jan 25 02:05 UTC] No.42733293[source]▶
Price caps always seem like such a transparent political move.
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mgiampapa ◴[17 Jan 25 02:11 UTC] No.42733332[source]▶
How about profit caps? I feel like government stepping in and being the insurer with a sufficiently large pool of risk to spread around lets them set a fair rate without the need to make a return or answer to shareholders.

To some extent this has helped with health insurance. Each year I get a check back from my insurer saying they didn't spend enough on my care vs my premiums.

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bitcurious ◴[17 Jan 25 02:19 UTC] No.42733377[source]▶
> To some extent this has helped with health insurance. Each year I get a check back from my insurer saying they didn't spend enough on my care vs my premiums.

This has baffled me ever since Obamacare was first passed - it seems that each year the insurance companies have an incentive to drive up the cost of healthcare, since that’s how they earn more money in absolute terms. Is it not so?

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1. nradov ◴[17 Jan 25 02:28 UTC] No.42733448[source]▶
That is so, to an extent. But it's balanced against employer demands to hold down medical costs because they pay most of the bills. If your HR department can save 5% on employee medical costs by switching from Blue Cross to Cigna next year they'll absolutely do it.